GST rate on Government work and sub contract work

[KS Bhat]

1. A is contractor (Government) work completed in 05/07/2022 department uploaded details GSTR-7 in Oct 2022 and same month GSTR-3B works declared what is the Rate of Tax 12% or 18%

2. A is main contractor B is sub-contractor A has taken Govt contract B done work of A work completed on 4/07/2022 contract agreement date 30/12/2021 what is the GST B should collect from main Contractor A

 

[Compliance Doctor]

The GST rate on government work generally depends on the type of service provided. In many cases, works contract services provided to the Government, State Government, or local authorities attract 12% GST if they relate to infrastructure such as roads, bridges, canals, or public utilities. However, some contracts may fall under 18% GST depending on the nature of the service and project classification.

For sub-contract work, the GST rate usually follows the rate applicable to the main contractor's service, though specific notifications may provide concessional rates in certain cases. Because GST rules for government contracts can vary based on the project type and contract terms, it's advisable to consult experts like Compliance Doctor for accurate GST classification and compliance support.

[Shilpi Jain]

Facts regarding nature of work and contract clauses regarding milestones/payment required to guide on your queries

AI Summary

GST rate for government works depends on project nature; subcontractors should apply the main contractor's applicable rate. The applicable GST rate for government works depends on the nature and classification of the service rather than merely being a government contract; infrastructure-type works may receive concessional rates while others take the standard rate. Contractual terms and factual details are necessary to determine the correct rate, and subcontractors generally apply the same GST rate as the main contractor unless a specific notification provides otherwise. Advisors should verify project classification, contract clauses, and relevant notifications before determining the applicable rate and invoicing.